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Microsoft’s CEO Satya Nadella last week announced that the software giant is reorganizing its executive and engineering team. Two new teams are being formed and the Windows chief Terry Myerson is leaving Microsoft. A new team called Experiences & devices will be led by Rajesh Jha, and the second team called Cloud + AI Platform will be led by Scott Guthrie.

CEO Satya Nadella has once again confirmed that the future of Microsoft is now all about intelligent cloud and intelligent edge. The kernel unit of the OS which was part of Microsoft’s Windows division will become a part of Azure, and several other engineers would move to the new teams.

Experiences & devices which will be led by Rajesh Jha include subgroups. Joe Belfiore will be leading the Windows group with the aim to improve the Windows experience and drive innovation in the PC and device ecosystem. Panos Panay is promoted to serve the devices group as Cheif Product Officer. New Experiences and Technology will be led by Kudo Tsunoda and Brad Anderson will continue to lead Enterprise Mobility and Management.

Nadella said in a memo to the employees.

Quote

“Over the past year, we have shared our vision for how the intelligent cloud and intelligent edge will shape the next phase of innovation. First, computing is more powerful and ubiquitous from the cloud to the edge. Second, AI capabilities are rapidly advancing across perception and cognition fueled by data and knowledge of the world,”

Former Microsoft employee Tim Sneath, who spent no less than 17 years at Redmond, in a blog post says that Nadella’s new decision is a dog whistle to the end of Windows as a core business. He says that the reorganization once again confirms Microsoft’s increased focus on cloud and AI, reiterates that Windows is no longer the core business for Microsoft.

“If you’re an ecosystem partner of Microsoft, the lesson is clear — in the same way as Windows is no longer a core business, unless you’re focused on the cloud, you’re not a strategic partner. Windows was the company’s centerpiece, not just in terms of being the largest revenue contributor, but even more so, the gravitational force that influenced every strategic decision,” he said.

Microsoft’s decision of leaving clients and Windows behind could eventually lead to changes in terms of the company’s culture and relationship with partners. The fact that Microsoft no longer sees Windows as the core of its business is sad. The cloud and AI brings Microsoft most of the cash, and the transition would help it remain a successful company.